In J&K youngsters opting for entrepreneurial ventures

In J&K youngsters opting for entrepreneurial ventures
Image Source: Twitter @minmsme

With government jobs being scarce, the youngsters are opting for entrepreneurial ventures to eke their livelihood in Jammu and Kashmir.

Official data reveals that since 2015 more than 47,000 youth have registered for starting their Micro Small Medium Enterprises (MSME). With number of schemes being introduced by the government to promote self-employment, youngsters are being encouraged to venture into business activities.

Official data further reveals since last year the number of new units registered have witnessed an upward trend.

From the period of 2015 to 2020, 11261 MSMEs have been registered in Jammu and Kashmir during the period 2015 to July 2020 via UdyogAadhaar Portal. This includes 8314 Micro, 2794 Small and 153Medium units.

From July 2020, a total number 36507 classified and unclassified units have come up in Jammu and Kashmir since July last year when the lockdown was still in force in the union territory. Of 36507, 32208 micro units have come up since July last year, followed by 1240 Small, 124 Medium units.

A total of 4299 unclassified units have also been registered by the youth of Jammu and Kashmir during the same period through Udyam registration.

On 1st July, 2020, after adoption of new definition of MSMEs, a new registration portal ‘Udyam Registration’ has been launched by Ministry of MSME and so far documents suggested that 36,70,538 classified MSMEs are registered on the portal in All India (from 01.07.2020 to 15.07.2021).

Jammu and Kashmir government has shown keenness in promotion of the entrepreneurship in Kashmir region given the fact.

Recently after the implementation of new industrial development scheme, Jammu and Kashmir has locked in Rs 23000 crore outside investment. Of which RsRs 11000 crore will be invested in Kashmir division and Rs 12000 crore in Jammu division.

This is part of the government’s exercise to woo investors from outside states and countries to invest in union territory of Jammu and Kashmir.

The Rs 28,400 crore central scheme for industrial development in J&K will be implemented under the supervision of Department for Promotion of Industry and Internal Trade (DPIIT), government of India, while the UT government has been delegated the power of registration and processing of claims under the scheme.

As per a notification issued earlier by the government of India, the scheme will be implemented under the supervision of the Department for Promotion of Industry & Internal Trade (DPIIT). "However, the registration process as well as processing of claims under different incentive components is delegated to the UT of Jammu and Kashmir."

The notification has paved way for the constitution of three committees for governance and implementation of this scheme.

The apex committee will be headed by the Union Home Minister and will have Union Commerce and Industry Minister and Lt. Governor of J&K as its members. The apex committee will have powers to decide upon any modification in the scheme within its overall financial outlay.

The steering committee will have Secretary, DPIIT as Chairperson and Secretary/ Additional Secretary, Ministry of Home Affairs, Secretary, Ministry of Environment, Forest and Climate Change, Secretary, Ministry of MSME, representative, NITI Aayog, Additional Secretary and Financial Advisor (AS&FA), DPIIT, Chief Secretary, J&K, Joint Secretary, DPIIT in charge of J&K scheme as Member Secretary.

The Union Territory Level Committee will be headed by Chief Secretary, Jammu & Kashmir as Chairperson .

The UT level committee has been tasked to monitor the overall implementation of the Scheme and put in place proper checks and balances for ensuring transparency and efficiency in grant of registration, processing and approval of claims under the Scheme.

The Committee in coordination with the Department of Industries and Commerce, UT of Jammu and Kashmir shall ensure that proper checks and balances are in place to avoid misuse of the Scheme

It is pertinent to mention here that the Cabinet Committee on Economic Affairs chaired by Prime Minister NarendraModi in January approved the proposal of Department for Promotion of Industry and Internal Trade for Central Sector Scheme for Industrial Development of Jammu & Kashmir. The scheme is approved with a total outlay of Rs. 28,400 crore up to the year 2037.

The scheme will provide a capital Investment Incentive at the rate of 30% in Zone-A and 50% in Zone-B on investment made in Plant & Machinery (in manufacturing) or construction of building and other durable physical assets (in service sector).

Units with an investment up to Rs. 50 crore will be eligible to avail this incentive. Maximum limit of incentive is Rs 5 crore and Rs 7.5 crore in Zone-A and Zone-B respectively.

Capital Interest subvention: At the annual rate of 6% for maximum 7 years on loan amount up to Rs. 500 crore for investment in plant and machinery (in manufacturing) or construction of building and all other durable physical assets (in service sector).

GST Linked Incentive: 300% of the eligible value of actual investment made in plant and machinery (in manufacturing) or construction in building and all other durable physical assets(in service sector) for 10 years. The amount of incentive in a financial year will not exceed one-tenth of the total eligible amount of incentive.

Working Capital Interest Incentive: All existing units at the annual rate of 5% for maximum 5 years. Maximum limit of incentive is Rs 1 crore.

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